What is the Bumper Man franchisee prohibited from doing with respect to customers of the Bumper Business?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
For so long as you are Franchisee's Principal under the Franchise Agreement and for a period of two years from the date you cease to be Franchisee's Principal, you will not, either directly or indirectly, individually or through, on behalf of, or in conjunction with any other person:
- (i) Own, maintain, operate, be employed by, engage in, franchise, lease property to, advise, help, make loans to, or have any interest in, either directly or indirectly, any Competitive Business;
- (ii) Divert or attempt to divert any actual or prospective business or customer of the Bumper Business to any Competitive Business, by direct or indirect inducement or otherwise; or
- (iii) Perform, directly, any or indirectly, any other act injurious to or prejudicial to the goodwill associated with the Marks and the System
The above covenants apply exclusively in the United States of America during the time that you serve as Principal for the Bumper Business and within 25 miles of any then-existing Bumper Man business during the two-year period following the date you cease to be the Principal of the Bumper Business.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, a franchisee is restricted from diverting or attempting to divert any actual or prospective business or customer of the Bumper Business to any Competitive Business, whether through direct or indirect inducement or other means. This restriction applies while the individual serves as a Principal for the Bumper Business.
Furthermore, for a period of two years after ceasing to be a Principal, the franchisee is prohibited from engaging in activities that could harm the goodwill associated with the Bumper Man marks and system. These activities include owning, operating, or being involved with a Competitive Business, or performing any action injurious or prejudicial to the goodwill of the Bumper Man brand. These restrictions apply exclusively within the United States while serving as Principal, and within 25 miles of any existing Bumper Man business during the two years following the end of their role as Principal.
This non-compete clause ensures that franchisees and their Principals remain loyal to the Bumper Man system both during their active involvement and for a reasonable period afterward, protecting the brand's market position and goodwill. Prospective franchisees should carefully consider these restrictions, as they could impact their future business opportunities, especially if they plan to remain in the same geographic area or industry after leaving the Bumper Man system. It is common practice in franchising to have non-compete agreements to protect the brand and prevent franchisees from using proprietary knowledge gained during their franchise term to compete against the system.